The problem is very much technological - traditional stock market is based on opacity and exclusivity. Blockchain is based on permissionlessness and transparency.
Internet didn’t succeed because it allowed illegal stuff to be published. It succeeded because anyone could begin publishing, and if it was illegal then it was their responsibility.
With blockchain it’s similar - you can create financial instruments without gatekeepers. It is your responsibility to uphold the laws.
Such approach leads to far greater innovation. Just look at what UniSwap is doing - they are pioneering a system to exchange low volume tokens without an order book. This is something that stock exchanges tried to solve for many years and failed.
Or flash loans - a concept that is virtually impossible to do on the traditional markets, and makes the whole financial system way more resilient in the end.
